Depth | Hardware Tools Industry Information - Hand Tools
Issuing time:2022-09-26 10:07
First, the basic overview of the hand tool industry
Hand tools, for power tools, are mainly tools that are twisted or applied by hand.
1. Classification by use
Hand tools can be divided into wrenches, pliers, screwdrivers, tape measures, hammers, sockets, cuttings, scissors, sets, and auxiliary tools such as tool carts, etc., each category is different 's model.
2. Classification according to its quality and performance
(1) Civilian grade, also known as "DIY" abroad, refers to some sets of tools used for home decoration and home improvement maintenance by yourself, such as sawing plywood to install door locks, pliers, knives, scissors, rulers, etc. Saw, screwdriver, etc. Therefore, the quality requirements of civilian-grade tools are generally very low. They are cheap, affordable, and convenient for home use. At present, they are relatively popular and many sets of tools used as gifts belong to this category.
(2) Standard grade, also known as ordinary grade, is generally made of medium carbon steel and properly heat-treated. Its strength and rigidity are better than that of civilian grade, and it can basically meet the professional level of installation and maintenance of building decoration, home appliances and general small electrical machinery.
(3) Professional grade refers to tools and special tools with higher quality grades and more specific scope of use. Generally, the selected materials are made of alloy tool steels such as high carbon steel and chrome vanadium steel and then heat treated. They have good torsional strength, High hardness, such as auto maintenance tools, electronic telecommunication tools, etc.
(4) Industrial grade, the materials selected for this level of tools are all made of chromium-vanadium steel, Taiwan S2 material, chromium-molybdenum steel, chromium-nickel-molybdenum-vanadium and other alloy steels. A class of tools.
(5) Aerospace grade, which is the highest-level tool, used in aerospace, submarine nuclear power, military industry and other aspects.
Second, the development of my country's hand tool industry
(1) Development status of hand tool industry
Hand tools are labor-intensive industries. my country has always been a gathering place for hand tool manufacturing by virtue of its low-cost traditional competitive advantage, and its products are exported to all continents around the world.
The production areas of hand tools in my country are mainly distributed in Zhejiang, Jiangsu, Guangdong and Shandong, among which Zhejiang, Jiangsu and Guangdong are the most prominent, forming a hand tool industry cluster with the Yangtze River Delta and the Pearl River Delta as the main production belts.
There are many enterprises producing hand tool products in my country, and the following industry characteristics have been formed after years of development: First, the products produced by enterprises are of high quality and low price (highly advantageous); Second, the concentration of domestic hand tools industry is relatively low, and large and medium-sized enterprises above designated size are relatively low. In the third place, most of the domestic enterprises are OEM and OEM for high-end European and American companies, and their competitive advantages are not obvious. 5. Serious homogeneity, mainly in appearance, prone to infringement problems.
(2) Brand characteristics of hand tools
There are many brand enterprises producing hand tools in my country, mainly showing the following two characteristics: First, there are few domestic brand enterprises; second, there are many foreign brand enterprises, especially European and American high-end brand enterprises occupy an absolute advantage in my country's export brand enterprises.
Introduction of brand enterprises of hand tools in my country
(1) Domestic independent brands
Hangzhou Juxing Technology Co., Ltd.
Hangzhou Juxing Technology Co., Ltd. was established in 1993. It is a listed enterprise in the domestic hardware tool industry. Juxing Technology is a tool production and sales enterprise with important influence in the world (the combination of industry and trade, the start of a trading company, the later acquisition of tool brands, and the production of hand tools), Professional tool supplier for many industrial users in Europe and America. Deeply cultivated in the tool hardware industry for more than 20 years, it has firmly ranked the leader in the tool hardware industry with obvious competitive advantages. Mainly rely on the combination of endogenous growth and extensional expansion, and actively implement the corporate brand strategy. Its main brands are Greatstar, Workpro, Sheffield (hand tool brand). The company has become one of the largest hand tool suppliers in Asia such as LOWE'S, HOME DEPOT, WALMART, France BRICO DEPOT, Canada CTC, etc. Worldwide, there are more than 20,000 large supermarket chains selling the company's products at the same time.
(2) Enterprises with foreign brands
SATA is a mid-to-high-end hand tool brand tailored by APEX GROUP, a world-renowned hand tool manufacturer, in order to adapt to the characteristics of the Chinese market. It is an earlier single brand in China. As a company with a full range of overall solutions for equipment and safety protection, SATA is the first in the industry to propose a life-long warranty with integrity service terms, and plays a leading role in the middle and high-end hand tools.
2. STANLEY Stanley
Stanley is a worldwide, highly trusted, high-value global brand, with a brand history of more than 100 years, and an unshakable position in the world of tools. In Asia, Stanley has more than 1,000 employees and has 7 manufacturing plants. In China, Stanley has established 3 purchasing offices, 5 trading companies, and has Shanghai as the headquarters of the Asia-Pacific region, which has greatly promoted Stanley's presence in China. operation and development.
Group's main brands:
FACOM, the most well-known industrial hand tool brand in France, focusing on nuclear power and aerospace. Acquired by Stanley
CRAFTSMAN, the original brand of Sears supermarket, was acquired by Stanley in 2018. The products are mainly DIY household tools.
The world's second largest high-end hand tool brand, second only to Stanley's hand tool brands Williams, Blue-Point, CDI TORQUE and many other first-class brands. In 2004, the first Asian manufacturing center was established in Kunshan.
Williams, America's oldest and oldest brand of cast hand tools.
Blue-Point, Blue-Point Tools, one of the well-known high-end hand tools and auto repair tool brands in the United States.
CDI TORQUE, the world's leading manufacturer and brand of torque tools.
3. Analysis of key markets---main export markets
(1) The "unique" US market
1. Basic overview of the US market
According to my country's customs statistics, the United States is currently the largest exporter of hand tools in our country, and it is also the country with the largest trade surplus. The main reasons for the broad market of hand tools in the United States: First, the United States owns the world's largest hardware and building materials market and has numerous well-known building materials supermarkets. Company (TSC); Second, the United States is a country on wheels, with the highest car penetration rate in the world and the largest single car market in the world. The car aftermarket in the United States is extremely developed. Maintenance products, so the United States has a large market for auto repair and auto maintenance hand tools. The four giants in the US auto aftermarket are Autozone (more than 6,000 companies), Advacne, O'Reilly, NAPA; the third US audience has a broad market, Americans With strong hands-on ability, the audience market of hand tools includes not only professional workers, but also ordinary families.
2. The US market under the Sino-US trade friction
Exports to the United States fell sharply year-on-year, and exports fluctuated significantly. In the past two years, Sino-US trade frictions have continued. Since the United States launched the "Section 301" investigation against my country, especially in May 2019, the US government announced that the tariff rate on US$200 billion of listed goods imported from China has been increased from 10% to 10%. Since 25%, China's exports of hand tools to the United States have shown relatively large fluctuations. In 2019, China's exports of hand tools to the United States totaled 2,045,956,100 US dollars, a decrease of 278,068,300 US dollars compared with the previous year, and exports decreased by 12.00% year-on-year, which was 2017-2019. For the first time, exports fell year-on-year.
(2) The German market, which ranks first in the "15 EU countries"
Germany has always been the main exporter of hand tool products in my country. In 2019, the export volume ranked second in my country's main export market. From 2015 to 2019, the total export volume of China to Germany was stable and showed a continuous growth trend. In 2019, exports to Germany reached 322.411 million US dollars, an increase of 11% year-on-year.
Since the Sino-US trade friction, especially since the US has increased the 25% tariff, the price advantage of some products in China has been relatively weakened. There are many uncertain factors in US trade. Although the state has increased its support for the industry, the export tax rebate has been increased to 13%, but the increase in tax rebate is not enough to cope with the increase in US tariffs. Therefore, some export-oriented enterprises may choose other export markets. . Europe, which is also a high-end market for hand tools, may become the choice of some manufacturers.
According to statistics, from 2015 to 2019, Germany was the main export market for hand tools in my country, and the export price was relatively stable. At the same time, the US imposed tariffs on the EU market to a certain extent, which promoted the trade between China, Germany and the entire EU member states.
(3) Countries along the “Belt and Road” with steady and sustained export growth
According to my country's customs statistics, from 2015 to 2019, the total export value of my country's hand tools exported to countries along the "Belt and Road" continued to increase for five consecutive years, and the total export value in 2019 was nearly 3 billion US dollars. Among them, India's total exports in 2019 were US$315.909 million, ranking first among countries along the "Belt and Road".
There are many countries along the "Belt and Road", with a large population base, and most of them are developing countries. The growing industrial market in these countries will stimulate the demand for professional tool kits by professionals. It will also stimulate the demand for hand tools in the field of auto repair and maintenance. It is expected that the market in countries along the “Belt and Road” will continue to expand in the future.
Four, key market analysis --- the main competitive market
(1) Taiwan, China
The Taiwan hand tool industry is the same as the mainland hand tool industry. The products are mainly exported. The direct export ratio of Taiwan hand tools accounts for about 70%. The main export markets of its products are the United States, mainland China and Germany. Among them, the United States has long been the largest exporter. Like mainland companies, most Taiwanese hand tool companies are OEM OEMs for high-end European and American companies, and the added value of production is low. However, compared with the characteristics of low concentration and serious product homogeneity in the mainland hand tool industry, Taiwan's hand tool industry has a high degree of development and agglomeration, and at the same time, product differentiation is more obvious, mainly in the following three aspects:
①Industrial settlements, mature operation: Taiwan's hand tool industry settlements are mainly concentrated in Taiping and Dali area, there is one in a radius of 200 meters, and each settlement forms a relatively complete industrial chain. Each factory in the settlement has also advanced to at least three product levels, high, medium and low, for manufacturers to choose.
②Focus on innovation and differentiated development: Like mainland manufacturers, Taiwanese hand tool products have a low added value. Even if the product is of the same quality as Japan, Germany and other countries, the price will be relatively lower, so Taiwan's hand tool industry pays more attention to Innovation and differentiated development in order to maintain a competitive advantage in the fiercely competitive market.
③High labor cost and low output
Since the Sino-US trade friction, the sudden 25% tariff has made it difficult for buyers and enterprises to bear it for a while, and most importers, especially supermarket chains, are unwilling to share this part of the tax. At the same time, the uncertainty of the future Sino-US trade situation has caused some American customers to reduce their orders one after another, and began to inquire about prices from manufacturers in Taiwan and some Southeast Asian countries, which has brought great pressure to Chinese hand tool exporters.
①Advantages: The price is relatively cheap: Due to the high pressure of domestic competition, some small factories will choose low-priced raw materials in the selection of materials in order to reduce costs, which will affect the quality of products, while India sometimes has advantages in terms of materials; labor costs are low.
②Disadvantages: India's equipment is outdated, and only simple roughing can be performed; the production equipment capacity is low, and the gap with China's capacity is large; there is a shortage of skilled labor in big cities in India.